The Qantas Airways Ltd (ASX: QAN) share price is in focus today after the company posted a statutory profit after tax of $1.29 billion and declared a final fully franked dividend of 19.8 cents per share for FY26.

What did Qantas Airways report?

• Underlying Profit Before Tax: $2.06 billion, down $330 million from FY25
• Statutory Profit After Tax: $1.29 billion, down $316 million
• Final dividend: 19.8 cents per share (fully franked), total FY26 dividends $600 million
• Underlying earnings per share: 96 cents, down 14 cents
• Net capital expenditure: $4.0 billion, up 3%
• 17 new aircraft delivered during the year

What else do investors need to know?

Qantas continued to invest heavily in new aircraft and training facilities, marking the largest fleet renewal in its history. The group opened a new training centre in Mascot as part of a $100 million upgrade.

Around 25,000 eligible non-executive employees will each receive $1,000 in Qantas shares, following another year of meeting financial targets. Qantas Loyalty delivered strong results, with a 12% increase in underlying EBIT and record engagement from frequent flyers.

Net debt increased to $6.2 billion, remaining within management’s target range. The Board cancelled a planned $150 million share buy-back as part of its capital management.

What did Qantas Airways management say?

Commenting on the results, Qantas’ CEO, Vanessa Hudson, said:

This has been another year of progress, with customer satisfaction at its highest in a decade and world-leading operational performance, even as the aviation industry faced record high fuel costs and disruption from the conflict in the Middle East. We came through it with a strong result, which is what allows us to continue investing in the largest fleet renewal in our history and deliver more for our customers, people and shareholders.

What’s next for Qantas Airways?

Qantas expects domestic and international travel demand to remain resilient, with capacity growth and new routes on the horizon in FY27. The group will receive its first Project Sunrise A350-1000ULR in April, and the first non-stop Sydney-London flight will launch in October.

Management forecasts unit revenues to grow by 8–10% in the first half of FY27, despite ongoing pressure from elevated fuel prices. Qantas Loyalty earnings are expected to increase by 5–7% next year, and investment in new aircraft and employee training will continue.

Qantas Airways share price snapshot

Over the past 12 months, the Qantas Airways share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a decline of almost 20%.

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The post Qantas Airways share price on watch as FY26 profit dips but dividend and upgrades unveiled appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Two of the most influential ASX defence stocks released half-year results yesterday: Droneshield Ltd (ASX: DRO) and Elsight Ltd (ASX: ELS). 

These companies are involved in the defence sector, which boomed on the back of tailwinds through 2025 and into 2026. 

However, since then, it hasn’t been all smooth sailing. 

How the tables have turned

Defence-related ASX shares surged in 2025 as investors anticipated sustained growth in global military spending.

Ongoing conflicts, strategic competition, and a growing focus on national security reinforced expectations of stronger demand for defence equipment, cybersecurity, surveillance systems, and advanced military technologies.

However, the share prices of many ASX defence stocks have reversed course in recent months. 

This decline has largely reflected profit-taking and a reset in valuations after a strong rally, with investors becoming less willing to pay the high premiums built on expectations of sustained defence spending growth.

One stock hit harder than almost any other has been DroneShield shares. Once fetching over $6, DroneShield shares have come crashing back to earth in 2026. 

Its stock price is down 45% year to date and is now hovering around $1.70. 

Meanwhile, Elsight shares have continued to steadily grow. 

Its share price is up more than 220% in the last 12 months. 

Why Elsight shares are a buy

Despite moving in such different directions this year, the team at Bell Potter has similar optimism about both companies over the next 12 months. 

Following the half-year results, the broker has a buy recommendation on Elsight shares along with a price target of $8.20. 

From current levels, this indicates an upside potential of 42%. 

We believe ELS has developed a market leading product that is leveraged to the proliferation of unmanned systems in both a defence and commercial context. We believe ELS shares offer relative value versus listed peers at 33x CY26e EV/EBIT given its recurring revenue, high ROIC business model and defensible niche.

Elsight’s half-year report can be found here.

DroneShield shares a bounce-back candidate

After crashing in 2026, the team at Bell Potter believes DroneShield shares could be a value at its current price. 

Following its results, the team at Bell Potter issued a new report on the company. 

The broker has a buy recommendation and $2.40 (previously $2.50) price target on DroneShield shares. 

From yesterday’s closing price, this indicates an upside of 38%. 

We expect RFRecon and new high-moat next gen products to drive continued contract wins, particularly from Europe where DRO has a leading presence in the CUAS EW vertical. Top end of CY26 revenue guidance looks achievable. Retain Buy.

The post Defence Duel: Are Elsight or DroneShield shares a better buy right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Mesoblast Ltd (ASX: MSB) share price is in focus after the company reported a sharp increase in revenue to US$120.3 million for the 2026 financial year and a 44% reduction in net loss.

What did Mesoblast report?

• Total revenue climbed to US$120.3 million, up from US$17.2 million in FY2025
• Gross profit reached US$103.6 million, with gross profit excluding amortisation at US$109.7 million
• Net loss reduced by 44% to US$57.5 million, down from US$102.1 million last year
• Net operating cash spend was US$43.8 million, improved from US$50.0 million in FY2025
• Period-end cash balance stood at US$103 million with a new US$125 million five-year credit facility
• US commercial launch of RYONCIL generated US$115.2 million in net revenue

What else do investors need to know?

Mesoblast successfully launched RYONCIL in the US for children with steroid-refractory acute graft versus host disease, securing broad adoption at major paediatric transplant centres and major payer coverage. The median time from patient identification to treatment dropped from 29 days at launch to 8 days.

The company is expanding RYONCIL’s use to adults with severe SR-aGvHD, a market potentially three times larger than the paediatric segment, and progressing a registration trial as part of a second-line regimen with ruxolitinib. Mesoblast also obtained FDA clearance for a trial in children with Duchenne muscular dystrophy.

For its rexlemestrocel-L platform, Mesoblast completed treatment of 350 patients in a Phase 3 clinical trial for chronic low back pain, positioning the company to address a market worth over US$10 billion. Top-line results are expected in mid-2027.

What did Mesoblast management say?

Mesoblast’s CEO, Dr. Silviu Itescu, commented:

We are very pleased to report a strong full year gross profit of US$104M for the fiscal year 2026. The financial result is a product of continued growth in RYONCIL market adoption and focus on disciplined capital allocation while investing in our high-value opportunities.

What’s next for Mesoblast?

Looking ahead, Mesoblast plans to expand RYONCIL’s label to adults with severe SR-aGvHD and further advance development for chronic low back pain using rexlemestrocel-L, with a pivotal data readout due next year. The company also aims to develop next-generation cell therapies through new CAR-MSC and oncolytic virus technologies, broadening its pipeline for inflammatory and immunological diseases.

With a solid cash balance and new funding in place, Mesoblast intends to continue investing in high-value clinical programs and commercial execution, maintaining its position as a sector innovator.

Mesoblast share price snapshot

The Mesoblast share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a decline of around 5% over the past 12 months.

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The post Mesoblast earnings: Strong revenue growth and operational milestones in FY26 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.